This blog is based on our analysis — Top 10 Growth Opportunities in the Global Industrial and Irrigation Water Management Markets, 2025 — and the Frost Radar™: Irrigation Systems, 2024 authored by Frost & Sullivan’s Growth Experts, Paul Hudson and Julieta Paez, from the Water, Waste and Air team.
With urbanization, climate extremes, and water pollution on the rise, securing a clean and reliable water supply has become a pressing issue for both industrial applications and agriculture. As droughts, floods, and erratic rainfall become more frequent, water is evolving into a heavily regulated resource. This is driving businesses to take appropriate action. Whether it’s treating and reusing wastewater, adopting smart irrigation practices, or minimizing losses from leaks and overuse, the emphasis is now on maximizing efficiency. But there’s significant momentum behind these efforts: the irrigation systems industry is expected to grow from $14 billion in 2023 to $31.4 billion by 2030, driven by the rising demand for technology-led solutions, especially in regions facing water stress.
With rising costs and stricter regulations, are you equipped with the right tools to manage water more intelligently?
Megatrends Pushing Smart Water Use Across Sectors
So how will these shifts impact your next move in water strategy?
Access the full analysis to identify growth areas and innovation hotspots.
What’s Driving Businesses Towards Smarter Water Use
Water is becoming an essential resource that industries and agriculture need to manage with more precision and accountability than ever before. These imperatives are compelling businesses to completely rethink their approach to water management:
- Transformative Megatrends: As global policies tighten and climate-related water shortages shift towards efficient and tech-led water management. Companies are now tasked with cutting down on water use, enhancing treatment processes, and keeping up with increasingly strict regulatory standards across various industries.
- Internal Challenges: With the rise of ESG initiatives, sustainable finance, and circular economy principles, businesses are feeling the heat to boost their water performance, lessen their reliance on freshwater, and ensure their internal systems are geared for long-term sustainability.
- Innovative Business Models: Leading companies are stepping away from just offering standalone products. Instead, they’re creating integrated platforms that blend automation, digital services, and modular systems to provide scalable, outcome-focused water solutions.
How well is your current water strategy aligned with the key imperatives reshaping the ecosystem?
Where the Most Lucrative Growth Opportunities Are Emerging
These high-impact opportunities are set to unlock major returns for businesses:
- Smart Irrigation for Sustainable Agriculture
The smart irrigation segment is set to reach $10 billion by 2030 (CAGR of 14.2%), fueled by the increasing demand for climate-resilient and cost-effective solutions. This is pushing providers towards:
- Deploying AI and sensor-based systems to automate irrigation, optimize crop yield, and reduce labor costs
- Enabling hyperlocal scheduling and precision watering to prevent overuse and minimize runoff
- Bridging efficiency gaps in decentralized farming regions with scalable, tech-driven solutions
- Treated Water Reuse in Agriculture
From arid regions to tightly regulated economies, agricultural water reuse is becoming a scalable approach to achieving greater sustainability and food security. This is driving providers towards:
- Using treated wastewater to reduce freshwater dependency and safeguard long-term irrigation viability
- Designing modular reuse systems that are cost-effective for small- and mid-sized farms
- Supporting adoption through public-private partnerships and standards like the European Union (EU)’s water reuse regulations
Are you ready to turn emerging water technologies into a real competitive advantage?
Get the full guide for actionable strategies and investment priorities.
Next Steps: Turn Water Challenges into Growth Opportunities
Water is no longer just a cost or compliance issue; it’s become a powerful driver of innovation, efficiency, and long-term value. With pressures mounting from all sides, like climate change, regulations, resource shortages, and ESG expectations, the companies that act now will be the ones shaping the future.
Whether you’re fine-tuning irrigation systems, reusing treated water, or diving into real-time monitoring, the message is clear: using water wisely isn’t just beneficial for the planet; it’s also a smart business move.
What bold moves will your business make to lead to the future of water management?
Looking to prioritize the right investments, explore regional opportunities, or benchmark your approach to smart water use?
Get in touch with our Water, Waste, and Air Growth Experts to know more.
